Bitcoin Is Now Worth Nearly 3 Times More Than an Ounce of Gold

Gold-bars
7 August 2017

More than five months after bitcoin and gold prices hit parity, bitcoin is now worth nearly three times as much as the more traditional store of value.

The price of bitcoin reached a new high above $3,400 during today’s session, a figure that was more than $2,000 above the price of gold. At press time, the precious metal was trading for $1,257 according to a spot exchange rate provided by Bloomberg.

Overall, it’s the latest sign that the cryptocurrency asset class may be maturing in the eyes of an increasingly professional set of investors – earlier today, the total value of all publicly traded cryptocurrencies set a new all-time high, rising above $117 billion for the first time.

But while largely symbolic, the finding is notable given that bitcoin enthusiasts have long compared the digital asset to gold, arguing that it is a more effective store of value due to its digital and provably finite nature.

Still, it remains difficult to determine whether the two assets have any relationship in the market, with past attempts to draw a correlation largely coming up empty.

A CoinDesk report from July of last year found that, despite the fact they are both considered safe havens, there is hardly any similarity in market movements.

Gold bars image via Shutterstock